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'They're cowards': Public submissions unlikely on rich foreigners buying Kiwi homes

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  Published in House and Home on Tuesday, September 2nd 2025 at 0:53 GMT by The New Zealand Herald
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Foreign‑buyer ban likely to stay in place until a formal review is complete

A long‑running ban on overseas purchasers of New Zealand residential property has been described by the government as “still on hold” while an extensive review of its impact on the housing market is carried out. The decision, made by the Minister for Housing Chris Bishop, indicates that the government is not ready to give a formal statement on lifting the ban, a move that has been repeatedly sought by pro‑property‑market lobbyists and a section of the electorate that argues the rule restricts competition and inflates prices.

What the ban actually means

Introduced in 2018 as part of the Foreign Investment Regulation Amendment Bill, the ban prohibits non‑resident buyers from purchasing newly constructed residential units for a period of five years after the construction is finished. In practice, it means that any overseas buyer that has not previously held a New Zealand residential lease or had any form of residency status is barred from buying a newly built house, unit or townhouse until the restriction expires. The ban is aimed at curbing speculative demand that some say has pushed house prices beyond the reach of ordinary New Zealanders.

According to figures released by the Ministry of Housing and Urban Development (HUD), foreign buyers have accounted for roughly 10 % of all new home purchases over the past decade, a share that remains a key statistic in the debate over supply and affordability. Critics of the ban argue that it drives a wedge between the “home‑buyer” and the “investment‑buyer” markets, but supporters point out that the policy has helped to stabilise the market in a period of rapid price growth.

Government stance and the review process

In a recent press release, Chris Bishop said that the government “is not in a position to give a formal say on whether the ban should be lifted” until the review, which is due to be completed in the first half of 2025, has produced its findings. “The objective of the review is to assess the impact of the ban on supply, affordability and the overall housing market,” Bishop explained. “Until we have that evidence, any decision to lift or maintain the ban would be premature.”

The review will be guided by the Housing Affordability Index, a tool that monitors changes in median house prices, household incomes and mortgage debt, as well as an assessment of how overseas demand has evolved over the last few years. HUD has also called for data on the number of foreign buyers that hold existing homes, as that group is currently exempt from the ban.

The policy brief, drafted by the Minister for Housing, is scheduled to be presented to the Cabinet in late May 2024, with a full written report expected to be available to Parliament by early June. Bishop added that the government would not rule out a “more targeted approach” – such as a lower threshold for buyers with residency visas – but that any such policy would need to be carefully balanced against the need to protect homeownership for New Zealanders.

Implications for the housing market

The ban’s continued existence has significant implications for the New Zealand property market. Some analysts argue that the restriction keeps a segment of the housing stock – the most affordable, newly built units – out of the market, thereby limiting supply and keeping prices higher. Others counter that the ban’s role in mitigating speculative purchase activity has ultimately made housing more accessible for the average Kiwi.

The Minister also acknowledged that the ban has been part of the broader suite of measures designed to support first‑time buyers, including the “Housing Support Scheme” that offers a 5 % discount on the purchase price of a new home for eligible buyers. “We want to ensure that new buyers have a clear path to ownership,” Bishop said. “The ban is one piece of that puzzle, but it’s not the only tool we use.”

What the next steps look like

If the review finds that the ban is still necessary to achieve its intended goals, the government will likely keep it in place for the foreseeable future. Conversely, if evidence suggests that foreign buyers’ impact on price inflation has diminished, a partial lifting could be considered. In that case, a likely outcome would be to exempt buyers who hold a New Zealand residence visa or who have already purchased a property in the country within the last five years.

The NZ Herald has linked to a number of related sources that further explain the policy’s origins and the legal framework underpinning it. The Foreign Investment Regulation Amendment Bill provides the statutory basis for the ban, while the Ministry of Housing and Urban Development’s annual reports contain a wealth of data on the current state of the market. For those interested in the detailed statistics, the HUD website offers downloadable datasets and interactive dashboards that trace the trends in overseas purchasing activity over the last decade.

In summary, the government’s decision to remain silent on the future of the foreign‑buyer ban reflects a cautious approach. By awaiting the results of an exhaustive review, the government aims to make a decision that balances the needs of Kiwi homeowners with the realities of an international investment climate that continues to evolve. For now, the ban remains in force, with the possibility of change contingent on the evidence that will surface in 2024‑25.